Under what circumstances is the transfer fee waived for a Sonesta Simply Suites franchise?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- (10) you or the transferee pays us a transfer fee equal to the Initial Fee, as provided in Section 3.A of this Agreement. However, no transfer fee is due if, upon a spouse's death, that spouse's interest in this Agreement and your Hotel, or ownership in you, is transferred to the surviving spouse, provided that such transfer is subject to the terms and conditions of this Section 12;
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, the transfer fee, which is equal to the initial fee, is waived under a specific circumstance. If a spouse who is a party to the franchise agreement dies, the transfer fee is waived when the deceased spouse's interest in the agreement, the hotel, or ownership in the franchisee is transferred to the surviving spouse.
However, this waiver is conditional. The transfer must still adhere to all other terms and conditions outlined in Section 12 of the franchise agreement, which likely cover various aspects of the transfer process and the transferee's qualifications. This means that while the surviving spouse won't have to pay the transfer fee, they must still meet Sonesta Simply Suites's standards for franchisees and comply with the agreement's requirements.
This provision provides a measure of relief for the surviving spouse, preventing an additional financial burden during a difficult time. It is fairly common in franchising to have such a clause to allow for the continuation of the business within the family without incurring extra fees, provided the successor meets the franchisor's standards.